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Em Morley

Most Expensive Place to Rent in Britain (and it’s not London!)

Published On: May 7, 2015 at 8:45 am

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Categories: Property News

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The most expensive place in the UK to rent a room in a shared house or flat is Woking in Surrey.

A new study has found that renting in Woking, a 30-minute train journey from London Waterloo, cost £755 per month in the first quarter (Q1) of 2015, up from £503 in Q1 2014.1

Most Expensive Place to Rent in Britain (and it's not London!)

Most Expensive Place to Rent in Britain (and it’s not London!)

The serious housing shortage in Britain has caused property price surges and is fuelling room rent rises in popular areas and cities, according to the latest rental index from the flat and house share website EasyRoommate. The average rent per person in the UK was £451 a month in Q1 2015. This has risen from £433 in Q1 2014.1

Young professionals are moving to Surrey and other Home Counties in a bid to find more value for money whilst still working in London.

London’s density is increasing, causing young renters to leave the capital, where their work and social life is.

Chief Executive of EasyRoommate, Karim Goudiaby says: “There are also large corporations based in Woking, such as SABMiller and Cap Gemini, which is drawing young professionals out into the town who tend to share.”1

London is also in the top five most expensive places to rent in the UK, where rents rose by 6% this year compared to Q1 2014. The average room rate was £672 in Q1 2015. Furthermore, for every available room in the capital, there were around six people looking for a room.1

In an attempt to stop rents spiralling, Ed Miliband has pledged rent controls on three-year tenancies, with rent increases in this period limited to inflation rates.

The Residential Landlords Association (RLA) has criticised the plans. It believes they will reduce the supply of homes and discourage investment in the buy-to-let sector.

Research from the RLA indicates that two thirds of landlords in the UK will leave the private rental sector if Labour wins the general election and a rent controls policy is introduced.

Three Welsh cities, Pontypridd, Swansea and Carmarthen, featured in the 20 cheapest cities. Lowestoft in Suffolk was ranked the cheapest place to rent in 2015.1

1 http://www.telegraph.co.uk/finance/property/11583894/Rip-off-rents-Britains-priciest-place-to-flat-share-and-its-not-London.html

Average First Time Buyer Must Earn £41,000

Published On: May 6, 2015 at 4:05 pm

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Categories: Finance News

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The average first time buyer needs to earn at least £41,000 before they can get a mortgage. This is almost double the average wage in the UK of £22,000.

KPMG released a report this week that revealed the difference between property prices and salaries has widened so much that all aspiring buyers have affordability problems, unless they have a very high wage or inherit money.

First time buyers in London have the hardest struggle getting on the housing ladder. They must earn a huge £77,000 to buy their first home, but the average worker earns just £28,000.

These numbers are based on having a 10% deposit with the remaining 90% at 4.5 times the annual income, which varies massively around the country.

The smallest gap is in Northern Ireland, with the actual average wage at £18,857, compared to the £21,219 needed. The narrowest gap in England is in the North East, with actual earnings at £20,149 to the £23,616 required.

Head of Housing at KPMG, Jan Crosby says: “These figures make for frightening reading and show that housing affordability is no longer just a problem for lower wage earners.

“Now unless you earn well above average or receive inheritance, it is unlikely you will be able to afford to buy, no matter where in the UK you live.”1 

Average First Time Buyer Must Earn £41,000

Average First Time Buyer Must Earn £41,000

What first time buyers need around the country1

Region

 Average house price for first time buyers Current median annual wage of first time buyers

Required average annual wage of first time buyers
UK £202,765 £22,044 £40,553
London £384,856 £27,999 £76,971
South East £230,049 £24,391 £46,010
South West £179,204 £20,690 £35,841
East Midlands £136,366 £20,890 £27,273
East of England £180,331 £23,271 £40,074
West Midlands £145,394 £20,431 £29,079
North East £118,081 £20,149 £23,616
North West £131,977 £20,723 £26,395
Yorkshire and Humberside £132,143 £20,223 £26,429
Wales £129,546 £20,021 £25,909
Scotland £133,938 £21,770 £26,788
Northern Ireland £106,094 £18,857 £21,219

1 http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11584347/Average-first-time-buyer-needs-41000-salary.html

High rents of upmost concern to tenants

Published On: May 6, 2015 at 3:46 pm

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Categories: Landlord News

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A recent survey of 500 tenants from online letting agent Upad has revealed that spiralling rents are a bigger concern than agent fees.

On the eve of the election, interesting results from the investigation also indicate that 40% of respondents had no clear view on which party were best placed to solve tenants’ problems.[1]

Rents

When questioned on what their largest concerns were, 50% of tenants replied that it was the cost of renting. The quality of accommodation and agents’ fees were in equal second position with 12%.[2]

High deposits (7.3%) and the fear of future rent hikes (3.1%) were the next most common responses.[3]

Concerns over revenge evictions and the regulation of the rental sector were minimal, despite being prominent in the press over recent months.

High rents of upmost concern to tenants

High rents of upmost concern to tenants

Policies

Turning to the next government, respondents felt that cost of a home, more assistance to get onto the property ladder and the provision of more affordable homes were all high in importance. These three issues combined were important for 56% of people questioned. However, 20% felt that abolishing letting agent fees was of upmost concern.[4]

CEO of Upad, James Davis, said that, ‘what was most obvious from our research was how financially squeezed many tenants feel.’ He continued by saying that, ‘time and again, their answers showed that it was the high costs of renting and the even higher costs of buying their first home, which most worries them.’[5]

[1-5] http://www.propertyindustryeye.com/high-rents-a-far-bigger-concern-for-tenants-than-agents-fees/?utm_content=buffercaa60&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

 

Properties You Can Buy for £250,000

Published On: May 6, 2015 at 3:32 pm

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If you’re looking for a new property and have £250,000 to spend, then any of these homes could be what you’re after. In the UK and abroad, take a look at houses with this price tag.

Johns Place, Edinburgh – Offers over £250,000, Strutt & Parker 

This split-level flat has two bedrooms and has views over Leith Links to Arthur’s Seat. A portion of a period property, this home is well presented and has extra large bedrooms, a good-sized bathroom and a 28-foot-long open-plan living area.

Radcliffe-on-Trent, Nottinghamshire – £250,000-£275,000, Savills

 

This home is up for auction on 14th May, so you better be quick! The house has five bedrooms, three reception rooms and its own courtyard. With off-road parking and beautiful period features, the property is picturesque and practical.

Bettws Cedewain, Newton, Powys – £250,000, Strutt & Parker

Four barns have been converted on this farming estate and this semi-detached property has three bedrooms. The homes have been refurbished with stylish oak beams, joinery and staircases, and have exposed wooden floors. The three bedrooms have vaulted ceilings and the largest has an en suite.

Loubès Bernac, Lot-et-Garonne, France – €341,250, Leggett 

This property has three bedrooms, three reception rooms and outbuildings that could be converted. Two have already had work done and there is enough land for more. The cellar boasts a sauna and in the garden is a raised pool.

Ortaalan, Kalkan, Turkey – £250,000, Spot Blue

All three bedrooms in this villa have en suites and the master suite spreads across the whole of the top floor, with its own terrace and sea views. The house is fully furnished, has marble floors and a shaded dining terrace. On the roof-level terrace is a sunken swimming pool.

 

 

Sales of Properties Worth £1m Have Dropped by a Fifth

Published On: May 6, 2015 at 2:58 pm

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Sales of properties worth over £1m have fallen by almost a fifth year-on-year due to concerns over a possible mansion tax, revealed Land Registry.

Around England and Wales, 851 homes worth over £1m were sold in January, a 19% drop on January 2014, when 1,049 properties worth more than £1m were sold.1

The majority of properties in this price bracket were sold in London.

The uncertainty surrounding the election will be cleared soon when the results are announced, however, buyers are worried about potential mansion taxes and affordability pressure. Experts have found that London’s high-end property market has slowed as a result.

Stamp Duty changes in December 2014 also made this tax more expensive for buyers in the capital’s most expensive boroughs.

Sales of Properties Worth £1m Have Dropped by a Fifth

Sales of Properties Worth £1m Have Dropped by a Fifth

Land Registry research found that property prices in Kensington and Chelsea have had the slowest annual growth of all London boroughs in the past year, with just a 5.2% increase. The average home in this area is worth £1.29m.

Westminster was the only other London borough to record year-on-year price growth of less than 10%, with a 9.9% rise, making the average price £999,687.

In contrast, Newham experienced the highest growth of all London boroughs, with a 19.8% upsurge in prices, to £291,364.

Property Economist at Capital Economics, Matthew Pointon says: “Uncertainty regarding the mansion tax has taken its toll on prices in prime central London.”1 

In all price brackets, the amount of property sales in England and Wales was 53,168 in January, an 18% drop compared with January 2014, at 65,175.

House values rose in England and Wales by 5.3% in the year to March, reaching an average of £178,007. On a monthly basis, they dropped slightly by 0.8%.

The strongest price growth was recorded for semi-detached houses in the past year, with an increase of 6.1%. The average semi-detached home is now worth £169,194.

Regionally, London still has the strongest year-on-year price growth, with an 11.3% rise, making the average property in the capital worth £462,799 in March.

The only region to record lower house prices than a year ago was the North East, with a 2.9% drop to £97,444. In Wales, prices rose 2.7% to £117,828.

This data arrives as estate agents report a slowdown in the market as buyers await the outcome of the general election. The first time buyer sector in particular has experienced a downturn.

The National Association of Estate Agents (NAEA) found that first time buyers bought 22% of properties sold in March. This is down from 30% in February.

Overall, the NAEA found that demand for homes is the lowest in a year. An average of 343 house hunters registered per estate agent branch in March, a drop from 366 in February.

Almost two-thirds (63%) of estate agents noted a slowdown in the market, the NAEA revealed.1

The NAEA also said that the supply of homes on the market has risen slightly to an average of 48 per branch, compared to 43 in February.

Managing Director of the NAEA, Mark Hayward, says: “We may have seen a slight increase in supply this month, but it is not an ongoing trend or a big enough jump to fill the gap for demand.

“Although our agents have seen the market cooling off ahead of the general election, it will inevitably bounce back again at a rapid rate after May 7th, so it is more important than ever that the party elected focuses on increasing the supply of homes.”1 

1 http://www.dailymail.co.uk/news/article-3062946/Sales-homes-worth-1million-plunged-nearly-FIFTH-amid-fears-mansion-tax.html

 

 

 

 

One In Three Streets in UK have empty homes

Published On: May 6, 2015 at 2:20 pm

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An alarming report has indicated that one in three streets in the UK has one or more homes that have been unoccupied for at least six months.

The report from Nationwide has led the organisation to call on the next government to restore empty properties in order to ensure future occupation.

Absurd

Leigh Pearce is chief executive of the Nationwide Foundation, a charity backed by grants designed to assist in bringing unoccupied houses back into use. Pearce believes that it is, ‘absurd that so many properties remain empty and decaying, while at the same time we have a housing supply crisis, with many people unable to find anywhere to live that they can afford.’[1]

In 2012, the £50m Empty Homes Community Grants Programme was introduced in England. As a result, this has led to nearly 2,000 properties across the country being restored to a livable standard by community groups. However, the programme came to an end in March and campaigners are worried that no alternative has been forthcoming.

One In Three Streets in UK have empty homes

One In Three Streets in UK have empty homes

New homes

Instead, all major political parties have outlined plans to build new houses. The Tories have pressed ahead with their Right-to Buy scheme, opening up the offer to housing association tenants, with a projected £1bn from house sales potentially funding 400,000 new properties. Meanwhile, Labour, the Lib Dems and UKIP have all pledged to construct a minimum of 200,000 homes per year should they come in power.

However, a recent survey from Knight Frank has indicated that just 9% of housebuilders feel that building 200,000 more homes per year is currently achievable.

 

[1] http://www.independent.co.uk/news/business/news/one-in-three-streets-in-britain-has-at-least-one-property-that-has-been-empty-for-six-months-or-more–report-10224685.html